EMA Opposes Treasury Department Proposal Requiring Burdensome Financial Reporting
This week, EMA joined several small business associations in a letter opposing a Treasury Department proposal which would require financial institutions to report to the IRS on the deposits and withdrawals of all business and personal accounts, as well as transfers between accounts of the same owner.
EMA objected to the proposal due to the broad, untargeted nature of the Treasury proposal which is likely to create taxpayer complexity and confusion. Taxpayers will likely have to receive new or modified 1099s for every account they hold containing funds flow information that may not be relevant to their tax liability.
Simply put, the letter urged Congress to reject the Treasury proposal and explore less intrusive means of reducing the tax gap.